After losing everything while day trading, one unstable man "shot and killed nine people in Atlanta in a two-day spree. Just two weeks after the shooting, the North American Securities Administrators Association released a report stating that seven out of ten" of all day traders lost everything."
But what about the overall effect markets? Some analysts concede that while day traders added volatility, a small dose of volatility in a sluggish market environment can prove a positive ingredient. Volatility might be difficult to stomach, but "volatility is the lifeblood of the markets. If prices don't change, trades don't happen. If trades don't happen, stocks are superfluous. Without stocks, new business would not get funded, new fortunes would not be made, and new technologies would not get invented." (Johnson, "Trillion Dollar Bet," 2000)
The technology that enabled day trading was pervasive throughout the market, even in its more traditional sectors, so it is not fair to simply blame these outsiders and renegades, either. Even as early as the 1980's, there was concern that the better the technology, the quicker traditional and nontraditional investors could move, and the more volatile the markets. "We are learning that when we compress the time in which things happen, they happen differently," said Robert a. Brusca, the chief economist at Nikko Securities. "The reaction time to market-influencing events has dropped from months or days to minutes and seconds," added Allen Sinai, the chief economist of Sherson Lehman Brothers. (Finance/Program Trading, 2004)
Although day trading has fallen out of favor as a cultural phenomenon, it is by no means dead. On January 22, 2004 - GAIN Capital Group, a provider of foreign exchange trading and...
Financial Derivatives This study emphasized the importance roles of financial derivatives, which has been known for the last decade and its effects on the Global financial crisis. It further analyzes the impact of financial derivatives and how it can be controlled to prevent corporations from incurring a lot of risks. It also explains the existence of financial derivatives since 1970, to the recent Global Financial Crisis which occurred in the 2006. Risk
During times of extreme pressure from the supply or demand side, the central bank is prepared to go in and support the currency, to help provide stability. This is significant because traders around the world; will use the major currencies as a way to hedge themselves against different risks. Where, they will view the weakness of one country's currency as a sign that they could be facing a number
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25 per share on the initial offering date in 1961 and held as a long-term investment. The original 100 shares has grown to 48,000 shares through stock splits and stock dividends. And this does not include the reinvestment of cash dividends. Action Shares Shares After Split Closing Price Before Split Oct 1961 Bought 100 Shares April 1966 100% stock dividend (2 for 1) Nov 1969 Stock Split (2 for 1) Nov 1971 50% Dividend (3 for 2) July 1972 33 1/3% Dividend (4 for 3) June 1976 50% Dividend (3 for 2) Nov 1981 Stock Spilt (3 for 2) April 1983 Stock Split (5 for 3) June 1992 100% Dividend (2
3.2: Data Used: The data used in this study effort includes primary and secondary data. Along with information retrieved from the literature review, this researcher also personally compiled from... (Considerations for this section: What spatial and temporal characteristics do data include? Do any known or anticipated sources of error exist in the data? 3.2.1: Spatial and temporal characteristics: Specific data characteristics within a sub-section 3.3: Methods and techniques: Two specific types of
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